Vlada republike SrbijeGovernment of the Republic of Serbia



Absolute Deprivation – Lack of opportunities or capacities for individuals, households or social groups to access certain resources, institutions or to become involved with the basic processes of their society.

Absolute Poverty – The level of income or spending of families and individuals below the defined minimum of living requirements, such as food, clothes, footwear, housing, heating, etc. The basic living requirements are comprised of specified amounts and structures of consumptions for these requirements.

Active Population – An economically active population, whether employed, or seeking employment in the labour market. Represents the available workforce.

Activity Rate – Ratio of active population (employed and unemployed) relative to the population of a working age.

Concept of Deprivation derives from psychology and is founded on the concept of needs. Deprivation primarily represents an objective situation where there is a certain impediment to accessing social resources and processes resulting in fulfillment of multiple needs, attainment of acceptable living conditions and active participation in the community life.

Consumption Unit represents the consumption of a household member, with calculated differences for the consumption levels of adults and children and the ascribed joint consumption of the household.

Country-specific Indicators represent an instrument used to analyze the deprivation of social groups in country-specific conditions.

Dimensions of Exclusion represent specific forms of exclusion, i.e. areas wherefrom individuals and groups are excluded, such as income distribution, financial markets, labour markets, goods and services markets, the systems of education, healthcare and social security, social networks, local or wider social communities, culture, etc.

Discrimination – Unequal treatment of individuals or social groups solely based on their affiliation to a certain category defined using any socio-demographic feature (race, sex, age, political orientation, religion, ethnicity, etc.)

Economic Exclusion represents exclusion from the labour market, whether in the form of unemployment, inactivity, or exclusion from the division of economic resources, or in the form of poverty.

Economic Inequalities represent inequalities of income or other economic resources between individuals, households or groups within a population.

Extreme Poverty – Poverty representing danger to basic biological survival. According to World Bank methodologies, it is defined in practice as income amounts below 1.25 UDS per day.

Inactivity Rate – Ratio of inactive population relative to the population of a working age.

Income Mean – Income located precisely at the mid-point of the distribution of all incomes in a society, where half the society earns more than the amount, while the other half less.

Indicator – Indicator to a property of an occurrence that should precisely, uniformly and reliably show the property of the occurrence in the given aspect.

Joint Inclusion Memorandum – JIM is the document in which countries describe their respective context of poverty and social exclusion, as well as priorities in resolving these issues. The JIM is one of the requirements to be met in the EU accession process.

Leaken Indicators – Instrument for the standardized measurement of social inclusion at the EU level. The basic set of common Leaken indicators is open for re-examination and improvement, while data on social inclusion is collected using a SILC survey (Statistics on Income and Living Conditions) standardized for all EU members.

Living Standard – Living standards are the degree of satisfaction for certain needs or living conditions, such as income, housing, clothing, nutrition, etc. whereas the way the needs are met represents the lifestyle.

Material Deprivation – The inability of individuals or households to satisfy the needs and obtain the goods considered typical in their society.

Open Method of Coordination – OMC, established at the level of EU, is the main mechanism for achieving higher efficiency based on combining common goals of social policies developed by member states, national action plans and common indicators, with the aim to promote a more efficient strategic policy of social inclusion of member states (Council of the European Union, 2004). This is a voluntary process of political cooperation based on the agreed joint objectives and indicators which provide for measuring the progress in achieving the set goals. Involves a joint process of planning, monitoring, comparing and adjusting national policies towards the common goals of EU members.

Political Exclusion – Exclusion from the process of selecting representatives for political decision-making in a community, exclusion from political decision-making and the inability to influence in any way (directly through participation in decision-making bodies, or indirectly through elections) political decisions.

Prejudices – Unfounded beliefs and attitudes causing individuals or groups to be valued positively or negatively, most frequently based on stereotypes.

Purchasing Power Parity – Purchasing power parity is the principle wherein the rate of nominal depreciation is equal to the difference between the domestic and foreign inflation; the steeper (and less likely) version of absolute PPP leads to the total equalization of prices in all countries, when expressed in a common currency.

Relative Deprivation – Reduced chances for individuals, households or social groups (as compared to others in the same society) of being included in quality service, resources, or development processes of their society.

Relative Poverty – The minimum acceptable living standards of a society. Not expressed through an absolute financial amount (unlike absolute poverty), but as a percentage of the mean income or mean consumption.

Social Cohesion implies the ability of a society to ensure welfare of its members, to minimize inequalities and avoid disparities. No society is fully cohesive – this is rather an ideal that every society should strive to by maintaining, enhancing and adapting to the changes occurring in economic, social and political segments. The aim is balanced development throughout the EU, reducing structural disparities between regions and promoting equal opportunities for all. In practical terms, this is achieved by means of a variety of financing operations, principally through the Structural Funds and the Cohesion Fund.

Social Exclusion – The state of individuals or groups excluded from the economic, political, cultural or social system, thereby being unable to take part to their full abilities in the social relations and flows due to their poverty or lack of basic knowledge and opportunities for lifelong learning, or as a result of discrimination. Such occurrences distance individuals or groups from employment opportunities, income and educational opportunities, as well as from inclusion and participation in social networks and community activities. Excluded individuals and groups have insufficient or inadequate access to institutions, authorities and decision-making processes.

Social Inclusion – The process enabling those at risk of poverty and social exclusion to have the opportunities and funds required for full participation in the economic, social and cultural life and achieving a living standard and wellbeing considered normal in the society they live in. Social inclusion ensures greater citizen participation in decision making, impacting their lives and ensuring basic rights.

Social Inequalities represent inequalities in the social standing of individuals, households and groups stemming from unequal levels of income and other economic resources, social power and social reputation.

Social Risks – Factors increasing the chances of individuals and families to arrive at a state of poverty or be socially excluded (such as outdated qualifications, sickness, disability, unemployment, etc.)

Structural Poverty – Mostly long-term poverty caused by structural factors such as economic growth, the structure of the economy, available workplaces, adequacy and availability of education, etc.

Subjective Poverty – The feeling of deprivation people experience comparing themselves with others and comparing their income with what they consider to be the minimum for an acceptable standard of living.

Vulnerable Groups – Groups excluded from individual or multiple aspects of social life, living in poverty conditions or exposed to risks of being excluded and ending up in a state of poverty.



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